List out the cases where provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 are not applicable.

CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2016
List out the cases where provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 are not applicable.

Answer & Explanation:

Section 31 of the Securitization Act mentions certain cases where provisions of the Act are not applicable to: a lien on any goods, money or security given by or under the Indian Contract Act, 1872 or the Sale of Goods Act, 1930 or any other law for the time being in force; a pledge of movables within the meaning of Section 172 of the Indian Contract Act, 1872; creation of any security interest in any aircraft as defined in clause (1) of Section 2 of the Aircraft Act, 1934; creation of security interest in any vessel as defined in clause (55) of Section 3 of the Merchant Shipping Act, 1958; any conditional sale, hire-purchase or lease or any other contract in which no security interest has been created; any rights of unpaid seller under Section 47 of the Sale of Goods Act, 1930; any properties not liable to attachment (excluding the properties specifically charged with the debt recoverable under this Act)] or sale under the first proviso to Sub-section (1) of Section 60 of the Code of Civil Procedure, 1908; any security interest for securing repayment of any financial asset not ex-ceeding one lakh rupees; any security interest created in agricultural land; any case in which the amount due is less than twenty per cent of the principal amount and interest thereon.

Topics: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)

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